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DIY Hooded Towelswould do a couple of things differently though. I would cut off the hemmed edge on both ends (of the hand towel) and then measure. I think doing this will help prevent it being too bulky when trying to feed it through your sewing machine-mine jammed on me several times. I would also sew the hood on the outside, think it will look cleaner. Can't wait to make another one! :)
DIY vanilla - Made this for Christmas a few years ago and loved it so much I kept all of it.